The vacation ownership industry continued to expand through
2015 with reported revenue growth of 8.2 percent, a higher rate than both 2013
and 2014. In addition, Deloitte’s
research for the ARDA International Foundation (AIF) indicates the U.S.
vacation ownership industry has grown at a relatively strong pace, as it
continues to withstand the turbulence observed in the broader economy.

The growth is a positive sign for the Timeshare
Industry, but there are more numbers to dive into using AIF’s Financial Performance
2016: A Survey of Timeshare & Vacation Ownership Companies.

The results
of the Financial Performance survey are a measure of 2015 calendar year
performance as reported by timeshare company respondents. The
results below are a summary of selected key metrics that AIF believes provide
an overview of the vacation timeshare industry in the United States.

Timeshare sales reported in the 2016 Financial
Performance survey continued to show signs of strong growth in the industry
for the fourth consecutive year.

Respondents continued an emphasis on increased
sales efforts in 2015, leading to the strong net originated sales results.

Average volume per guest increased from $2,705 in
2014 to $2,835 in 2015, and the average transaction value increased from
$18,356 in 2014 to 19,225 in 2015.

The industry survey also indicated continued
increases in the weighted average yield per week.

Rescissions, as a percentage of gross sales,
decreased from 15.2 percent in 2014 to 14.4 percent in 2015 (representing a 5.3
percent decrease in the overall rescission rate).

Respondents reported that payments for 91.4 percent
of the dollar value of their receivables portfolios were current
(current or fewer than 31 days delinquent) at year-end 2015.

Respondent companies began tightening their lending
practices in 2009 as a result of the economic downturn and continued
this trend through2015.

For a more detailed look at this report be sure to
visit or read about it in this month’s edition of Developments.

Standing Together:ARDA & VRDA Join Forces

By Kathryn Mullan

They say that you’re stronger
together, and there’s power in numbers. This is a core principleof ARDA—how we have built our advocacy groups and likewise
grown our entire membership base over the last 45 years. This is even truer at
the state level, with various Committees doing awesome work around the country
on behalf of the vacation ownership industry.

The state of Virginia is one of the
best examples of this principle in action. A local group of developers and
vendors came together in the early 1990s, as one of the earliest state group
prototypes—banding together on common interests to help build a healthy
environment for both development and owners. In 1994, they decidedto organize in a more official way and founded the
Virginia Resort Development Association, Inc. (VRDA), a Virginia non- stock
company.

During the 22 years of VRDAs
existence, there have been many accomplishments and key points of work—namely,
the writing and frequent updating of the Virginia Real Estate Time-share Act
and its related regulations.

As with most things, there comes a
point in time where trends in the industry— namely, consolidation—drive change,
and the current VRDA is now considering a dissolution of the association and a
shift to an ARDA-Virginia State Committee. If the VRDA Board approves this
action at its upcoming December meeting, this change will take effect on
January 1, 2017. ARDA State Affairs Director Justin Vermuth will become the
lead contact for the Committee (as staff liaison)—working closely with local
lobbyists, developer/management/ exchange companies, and vendor/owner groups
with interests in this state.

Developments sat down with
both Philip Richardson and Justin Vermuth to discuss these pending changes, as
the VRDA turns the final page of its book and opens to new opportunities. Pick up this month’s installment of Developments
to find out what they had to say
about VRDA’s lasting legacy and where they plan on taking VRDA next.